Is This One of the Best ETFs to Buy Right Now?
Key Points
As a Vanguard ETF, it sports a low annual fee.
This ETF is poised to benefit from the skyrocketing demand for energy due to artificial intelligence (AI).
It pays a solid dividend, too.
- 10 stocks we like better than Vanguard World Fund - Vanguard Energy ETF ›
Many of us are seeking promising exchange-traded funds (ETFs) for our portfolios. An ETF is a mutual-fund-like security that trades like a stock, making it easy to get in and out of. You can buy into most ETFs via any good brokerage.
Here's one to consider -- an ETF that many people might view as one of the best right now: the Vanguard Energy ETF (NYSEMKT: VDE).
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Why is the Vanguard Energy ETF so promising? Well, for starters, it's a Vanguard fund, and Vanguard is known for low fees. Indeed, this ETF's expense ratio (annual fee) is just 0.09%. That means you'll pay only $9 each year for every $10,000 you have invested in the fund.
Image source: Getty Images.
Here's a more enticing reason to consider the Vanguard Energy ETF, though: The rapid proliferation of data centers for artificial intelligence (AI) processing is boosting demand for energy like crazy. Per BloombergNEF, "Data-center power demand hits 106 gigawatts (GW) by 2035 in BloombergNEF's newest forecast -- a 36% jump from the previous outlook, published just seven months ago."
TechCrunch reports:
Today, only 10% of data centers draw more than 50 megawatts of electricity, but over the next decade, the average new facility will draw well over 100 megawatts. The biggest sites help skew the data: Nearly a quarter will be larger than 500 megawatts, and a few will exceed 1 gigawatt.
Nothing is guaranteed, of course, but it's looking like the energy sector has a promising future, despite us consumers possibly facing higher costs.
Meanwhile, another big plus in the ETF's favor is that it's a solid dividend payer, with a recent dividend yield of 3%.
So give the Vanguard Energy Index Fund ETF some consideration for your long-term portfolio, especially if you're a fan of passive income.
Should you buy stock in Vanguard World Fund - Vanguard Energy ETF right now?
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Selena Maranjian has no position in any of the stocks mentioned. The Motley Fool has no position in any of the stocks mentioned. The Motley Fool has a disclosure policy.
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